Olympic Steel Inc. (Nasdaq: ZEUS), a national metals service center based in Cleveland, announced it has bought the assets of a Georgia company, Shaw Stainless & Alloy Inc.
Terms of the all-cash purchase were not disclosed. Olympic Steel said in a news release issued Friday morning, Oct. 1, that the deal is "immediately accretive" to its financial results.
The acquisition includes Shaw's stainless steel distribution and fabrication businesses, as well as its architectural and barrier defense businesses, according to the release. Shaw will be incorporated into Olympic Steel's specialty metals segment.
"Continuing to acquire well-run, high-return businesses is a key element of our strategy," said Richard T. Marabito, Olympic Steel's CEO, in a statement. "We are excited to quickly redeploy a portion of the proceeds from our recently announced sale of Detroit assets and operations. We expect higher-returning results from Shaw will replace the former Detroit earnings stream at a fraction of the investment."
Olympic Steel on Sept. 20 announced it had sold "substantially all of the company's Detroit assets and operations" to Canadian company Venture Steel Inc. The sale price was $58.4 million in cash.
Shaw, based in Powder Springs, Georgia, is a full-line distributor of stainless steel sheet, pipe, tube, bar and angles. The company also manufactures and distributes stainless steel bollards and water treatment systems. Shaw was founded in 1979 and operates about 120,000 square feet of warehouse and fabrication space in Marietta, Hiram, Powder Springs and Albany, Georgia. It will continue to operate as Shaw Stainless & Alloy, an Olympic Steel company, led by its existing management team, including president Bryan Shaw.
Olympic Steel, founded in 1954, operates from 41 facilities in North America, inclusive of seven locations added as part of the Shaw acquisition.
As of 11:35 a.m. Friday, Olympic Steel stock was trading at $24.54, up 0.74% from the close on Thursday, Sept. 30. The stock's 52-week high is $40; the 52-week low is $10.84.
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